Barclays files patent applications for digital currency and blockchain projects

UK-based bank is seeking to create new systems for blockchain data storage and secure transfer of digital currencies as banks pave way for embracing crypto

Barclays Bank has applied to the US Patent and Trademark Office (USPTO) for two patents related to the transfer of digital currency and blockchain data storage.

According to the application, the first patent is a system for the transfer of digital currency from payer to a recipient that would securely verify the identity of both, and validate and record transactions through public key cryptography and a digital currency ledger.

In the “Background” section of the application, the bank explains that “cryptocurrencies are digital currencies” and they “are distinct from centrally controlled government-issued currencies and offer a decentralised form of currency and or medium of exchange”.

Is Barclays moving to crypto?

This patent would suggest that Barclays is planning to include cryptocurrency transactions to the services it provides.

The application also describes a digital currency system “wherein amounts of digital currency may be created, destroyed, split, joined or transferred by adding suitable operation data to a digital currency ledger (for example, a blockchain)”.

The patent application highlights that “some operations may be performed only by authorised entities (such as the create and destroy operations), and other operations may be performed by any entity that holds or owns the amount of digital currency on which the operation is to be performed (for example split, join and transfer operations)”.

Blockchain data storage

The second patent is a blockchain system for storing and endorsing data as well as claims related to specific clients using the validation of personal information for Know Your Customer (KYC) verifications.

Recently, rumours surfaced that Barclays was analysing whether customer interest in crypto merited setting up a trading desk specifically for cryptocurrency trading. However, the claims were later denied by Barclay CEO Jes Stanly. However, Stanly said the bank continues in helping clients to settle Bitcoin futures contracts that are offered on derivatives exchanges.

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